PCOR Procore Technologies Inc

Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“Our strong topline performance exceeded expectations, reinforcing our momentum heading into FY25,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “The magnitude of high-quality, large transactions reflects the trust our customers place in us, and the strength of our market position.”

“2024 was another year of strong margin expansion delivering 800 basis points of non-GAAP operating margin improvement. Our Q4 results are not indicative of the operating margin you should expect for FY25,” said Howard Fu, CFO of Procore. “We have ambitious goals to be a high margin business and we are committed to making further strides toward those goals in 2025 and beyond.”

Fourth Quarter 2024 Financial Highlights:

• Revenue was $302 million, an increase of 16% year-over-year.
• GAAP gross margin was 81% and non-GAAP gross margin was 85%.
• GAAP operating margin was (22%) and non-GAAP operating margin was (1%).
• Operating cash inflow for the fourth quarter was $29 million.
• Free cash inflow for the fourth quarter was $0.3 million.

Full Year 2024 Financial Highlights:

• Revenue was $1,152 million, an increase of 21% year-over-year.
• GAAP gross margin was 82% and non-GAAP gross margin was 86%.
• GAAP operating margin was (12%) and non-GAAP operating margin was 10%.
• Operating cash inflow for 2024 was $196 million.
• Free cash inflow for 2024 was $128 million.

The financial results included in this press release are preliminary and will not be final until Procore files its Annual Report on Form 10-K for the period. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Recent Business Highlights:

• Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,333 as of December 31, 2024, an increase of 16% year-over-year.
• Number of organic customers contributing more than $1,000,000 of annual recurring revenue totaled 86 as of December 31, 2024, an increase of 39% year-over-year.
• Added 113 net new organic customers in the fourth quarter, ending with a total of 17,088 organic customers.
• Achieved a gross revenue retention rate of 94% for 2024.
• Achieved a net revenue retention rate of 106% for 2024.
• As of December 31, 2024, 75% of total annual recurring revenue was generated from customers using four or more products.
• As of December 31, 2024, 48% of total annual recurring revenue was generated from customers using six or more products.
• Ended 2024 with 4,203 full-time employees, an increase of 14% year-over-year.
• Announced a series of new product innovations, including the launches of Procore Artificial Intelligence and AI Agents, Resource Management, Safety, and Scheduling at Groundbreak 2024, the construction innovation event of the year.
• Named to Fortune Magazine's Future 50 list, which recognizes resilient businesses that are built to deliver strong long-term growth.

First Quarter and Full Year 2025 Outlook:

Procore is providing the following guidance for the first quarter and full year 2025:

• First Quarter 2025 Outlook:
  • Revenue is expected to be in the range of $301 million to $303 million, representing year-over-year growth of 12%.
  • Non-GAAP operating margin is expected to be in the range of 7% to 8%.
• Full Year 2025 Outlook:
  • Revenue is expected to be in the range of $1,285 million to $1,290 million, representing year-over-year growth of 12%.
  • Non-GAAP operating margin is expected to be in the range of 13% to 13.5%.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results.

Quarterly Conference Call

Procore Technologies, Inc. will hold a conference call to discuss its fourth quarter and full year results at 2:00 p.m., Pacific Time, on Thursday, February 13, 2025. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry, including our outlook for first quarter 2025 and the full fiscal year 2025, that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or future financial or operating performance, and may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words, or other similar terms or expressions that concern Procore’s expectations, strategy, plans, or intentions.

Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations, including, but not limited to, our expectations regarding our financial performance (including revenues, expenses, and margins, and our ability to achieve or maintain future profitability), our ability to effectively manage our growth, anticipated performance, trends, growth rates, and challenges in our business and in the markets in which we operate or anticipate entering into, economic and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, interest rates, tariffs, and challenging geopolitical conditions), our progress with respect to our go-to-market transition and our ability to realize the expected benefits of the transition, our ability to attract new customers and retain and increase sales to existing customers, our ability to expand internationally, the effects of increased competition in our markets and our ability to compete effectively, our estimated total addressable market, our ability to execute, and realize benefits from, our stock repurchase program, and as set forth in Procore’s filings with the Securities and Exchange Commission. You should not rely on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

In addition to Procore’s results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Procore believes certain non-GAAP measures, as described below, are useful in evaluating Procore’s operating performance. Procore uses this non-GAAP financial information, collectively, to evaluate its ongoing operations as well as for internal planning and forecasting purposes. Procore believes that non-GAAP financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with GAAP, and are presented for supplemental purposes only.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, and acquisition-related expenses. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by total revenue. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Non-GAAP diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock equivalents outstanding for the period, including options to purchase common stock, restricted stock units, and shares to be issued pursuant to the employee stock purchase plan. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury stock method.

Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is a non-cash expense and is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Since the amount of employer payroll tax-related items on employee stock transactions is highly variable due to factors outside our control, and unrelated to Procore’s core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, Procore believes this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with management’s view of the business. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs and retention payments. These expenses are unpredictable and generally would not have otherwise been incurred in the periods presented as part of our continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. Procore believes that excluding acquisition-related expenses facilitates the comparison of its financial results to its historical operating results and to other companies in its industry. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Unlike stock-based compensation expense, employer payroll tax related to employee stock transactions is a cash expense that we will continue to incur in the future. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.

Free Cash Flow: Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth, and execute our stock repurchase program.

Other Metrics

Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts.

About Procore

Procore Technologies, Inc. (NYSE: PCOR) creates software for people who build the world. With a focus on providing timely and accurate data for all, Procore transforms the construction industry one project at a time - from hospitals and skyscrapers to airports and stadiums. Beyond its connected, innovative technology, Procore empowers the industry and its communities through Procore.org. For more information, visit www.procore.com.

PROCORE-IR

Category: Earnings

 

Procore Technologies, Inc.

Condensed Consolidated Statements of Operations (unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands, except share and per share amounts)

Revenue

$

302,048

 

 

$

260,041

 

 

$

1,151,708

 

 

$

950,010

 

Cost of revenue(1)(2)(3)

 

56,834

 

 

 

47,831

 

 

 

205,612

 

 

 

174,462

 

Gross profit

 

245,214

 

 

 

212,210

 

 

 

946,096

 

 

 

775,548

 

Operating expenses

 

 

 

 

 

 

 

Sales and marketing(1)(2)(3)(4)

 

161,733

 

 

 

122,511

 

 

 

552,019

 

 

 

494,908

 

Research and development(1)(2)(3)(4)

 

89,289

 

 

 

74,611

 

 

 

312,987

 

 

 

300,571

 

General and administrative(1)(3)(4)

 

60,436

 

 

 

52,422

 

 

 

217,513

 

 

 

195,746

 

Total operating expenses

 

311,458

 

 

 

249,544

 

 

 

1,082,519

 

 

 

991,225

 

Loss from operations

 

(66,244

)

 

 

(37,334

)

 

 

(136,423

)

 

 

(215,677

)

Interest income

 

5,980

 

 

 

5,167

 

 

 

23,694

 

 

 

19,779

 

Interest expense

 

(460

)

 

 

(480

)

 

 

(1,899

)

 

 

(1,957

)

Accretion income, net

 

2,918

 

 

 

3,179

 

 

 

13,583

 

 

 

9,794

 

Other income (expense), net

 

(3,110

)

 

 

649

 

 

 

(3,136

)

 

 

(360

)

Loss before provision for income taxes

 

(60,916

)

 

 

(28,819

)

 

 

(104,181

)

 

 

(188,421

)

Provision for income taxes

 

1,375

 

 

 

700

 

 

 

1,775

 

 

 

1,273

 

Net loss

$

(62,291

)

 

$

(29,519

)

 

$

(105,956

)

 

$

(189,694

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.42

)

 

$

(0.20

)

 

$

(0.72

)

 

$

(1.34

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

149,202,684

 

 

 

144,074,303

 

 

 

147,444,772

 

 

 

141,961,467

 

(1)

Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows:

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(in thousands)

Cost of revenue

$

4,422

 

$

3,134

 

$

15,478

 

$

11,491

Sales and marketing

 

15,333

 

 

13,198

 

 

58,058

 

 

55,162

Research and development

 

18,277

 

 

15,874

 

 

67,961

 

 

68,275

General and administrative

 

13,734

 

 

11,769

 

 

53,336

 

 

44,406

Total stock-based compensation expense*

$

51,766

 

$

43,975

 

$

194,833

 

$

179,334

 

*Includes amortization of capitalized stock-based compensation of $2.5 million and $1.4 million, respectively, for the three months ended December 31, 2024 and 2023; and $8.0 million and $4.5 million, respectively, for the years ended December 31, 2024 and 2023, which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs, and was primarily amortized in cost of revenue.

(2)

Includes amortization of acquired intangible assets as follows:

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(in thousands)

Cost of revenue

$

6,698

 

$

5,904

 

$

25,437

 

$

22,396

Sales and marketing

 

3,224

 

 

3,106

 

 

12,700

 

 

12,425

Research and development

 

650

 

 

670

 

 

2,657

 

 

2,757

Total amortization of acquired intangible assets

$

10,572

 

$

9,680

 

$

40,794

 

$

37,578

(3)

Includes employer payroll tax on employee stock transactions as follows:

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(in thousands)

Cost of revenue

$

126

 

$

101

 

$

612

 

$

540

Sales and marketing

 

360

 

 

383

 

 

3,227

 

 

2,766

Research and development

 

446

 

 

332

 

 

3,535

 

 

3,217

General and administrative

 

266

 

 

274

 

 

2,086

 

 

1,910

Total employer payroll tax on employee stock transactions

$

1,198

 

$

1,090

 

$

9,460

 

$

8,433

(4)

Includes acquisition-related expenses as follows:

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(in thousands)

Sales and marketing

$

—

 

$

481

 

$

1,448

 

$

2,483

Research and development

 

32

 

 

46

 

 

32

 

 

6,370

General and administrative

 

194

 

 

16

 

 

808

 

 

35

Total acquisition-related expenses

$

226

 

$

543

 

$

2,288

 

$

8,888

 

Procore Technologies, Inc.

Condensed Consolidated Balance Sheets (unaudited)

 

 

December 31,

 

 

2024

 

 

 

2023

 

 

(in thousands)

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

437,722

 

 

$

357,790

 

Marketable securities, current

 

337,673

 

 

 

320,161

 

Accounts receivable, net

 

246,472

 

 

 

206,644

 

Contract cost asset, current

 

33,922

 

 

 

28,718

 

Prepaid expenses and other current assets

 

47,013

 

 

 

42,421

 

Total current assets

 

1,102,802

 

 

 

955,734

 

Marketable securities, non-current

 

46,042

 

 

 

—

 

Capitalized software development costs, net

 

112,321

 

 

 

83,045

 

Property and equipment, net

 

43,592

 

 

 

36,258

 

Right of use assets - finance leases

 

31,727

 

 

 

34,375

 

Right of use assets - operating leases

 

28,790

 

 

 

44,141

 

Contract cost asset, non-current

 

47,505

 

 

 

44,564

 

Intangible assets, net

 

120,946

 

 

 

137,546

 

Goodwill

 

549,651

 

 

 

539,354

 

Other assets

 

20,918

 

 

 

18,551

 

Total assets

$

2,104,294

 

 

$

1,893,568

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

36,069

 

 

$

13,177

 

Accrued expenses

 

88,740

 

 

 

100,075

 

Deferred revenue, current

 

584,719

 

 

 

501,903

 

Other current liabilities

 

21,427

 

 

 

27,275

 

Total current liabilities

 

730,955

 

 

 

642,430

 

Deferred revenue, non-current

 

5,815

 

 

 

7,692

 

Finance lease liabilities, non-current

 

41,352

 

 

 

43,581

 

Operating lease liabilities, non-current

 

32,697

 

 

 

37,923

 

Other liabilities, non-current

 

5,122

 

 

 

6,332

 

Total liabilities

 

815,941

 

 

 

737,958

 

Stockholders’ equity

 

 

 

Common stock

 

15

 

 

 

15

 

Additional paid-in capital

 

2,535,868

 

 

 

2,295,807

 

Accumulated other comprehensive loss

 

(2,737

)

 

 

(1,375

)

Accumulated deficit

 

(1,244,793

)

 

 

(1,138,837

)

Total stockholders’ equity

 

1,288,353

 

 

 

1,155,610

 

Total liabilities and stockholders’ equity

$

2,104,294

 

 

$

1,893,568

 

Remaining performance obligation:

The following table presents our current and non-current RPO at the end of each period:

 

December 31,

 

Change

 

 

2024

 

 

2023

 

Dollar

 

Percent

 

(dollars in thousands)

Remaining performance obligations

 

 

 

 

 

 

 

Current

$

829,666

 

$

698,284

 

$

131,382

 

19

%

Non-current

 

456,801

 

 

302,215

 

 

154,586

 

51

%

Total remaining performance obligations

$

1,286,467

 

$

1,000,499

 

$

285,968

 

29

%

 

Procore Technologies, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands)

Operating activities

 

 

 

 

 

 

 

Net loss

$

(62,291

)

 

$

(29,519

)

 

$

(105,956

)

 

$

(189,694

)

Adjustments to reconcile net loss to net cash provided by operating activities

 

 

 

 

 

 

 

Stock-based compensation

 

49,348

 

 

 

42,601

 

 

 

186,880

 

 

 

174,835

 

Depreciation and amortization

 

24,626

 

 

 

19,690

 

 

 

89,753

 

 

 

71,633

 

Accretion of discounts on marketable debt securities, net

 

(2,699

)

 

 

(3,175

)

 

 

(12,830

)

 

 

(9,790

)

Abandonment of long-lived assets

 

610

 

 

 

676

 

 

 

1,428

 

 

 

1,488

 

Noncash operating lease expense

 

3,196

 

 

 

5,160

 

 

 

11,102

 

 

 

13,092

 

Unrealized foreign currency loss (gain), net

 

2,009

 

 

 

(1,263

)

 

 

2,304

 

 

 

(524

)

Deferred income taxes

 

(885

)

 

 

(776

)

 

 

(881

)

 

 

(769

)

Provision for credit losses

 

(57

)

 

 

1,170

 

 

 

591

 

 

 

8,052

 

Decrease (increase) in fair value of strategic investments

 

3

 

 

 

132

 

 

 

(454

)

 

 

287

 

Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations

 

 

 

 

 

 

 

Accounts receivable

 

(73,797

)

 

 

(60,636

)

 

 

(39,501

)

 

 

(57,492

)

Deferred contract cost assets

 

(5,776

)

 

 

(4,207

)

 

 

(8,993

)

 

 

(9,306

)

Prepaid expenses and other assets

 

5,880

 

 

 

(4,490

)

 

 

(6,241

)

 

 

(6,368

)

Accounts payable

 

11,623

 

 

 

(3,196

)

 

 

22,652

 

 

 

(938

)

Accrued expenses and other liabilities

 

(7,026

)

 

 

6,734

 

 

 

(15,501

)

 

 

4,759

 

Deferred revenue

 

85,359

 

 

 

77,510

 

 

 

79,091

 

 

 

106,590

 

Operating lease liabilities

 

(1,067

)

 

 

(5,668

)

 

 

(7,272

)

 

 

(13,840

)

Net cash provided by operating activities

 

29,056

 

 

 

40,743

 

 

 

196,172

 

 

 

92,015

 

Investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

(11,633

)

 

 

(2,252

)

 

 

(19,143

)

 

 

(10,325

)

Capitalized software development costs

 

(17,076

)

 

 

(9,498

)

 

 

(49,529

)

 

 

(34,685

)

Purchases of strategic investments

 

(450

)

 

 

(238

)

 

 

(2,367

)

 

 

(764

)

Purchases of marketable securities

 

(80,856

)

 

 

(93,142

)

 

 

(491,475

)

 

 

(402,424

)

Maturities of marketable securities

 

68,819

 

 

 

84,620

 

 

 

440,537

 

 

 

372,240

 

Sales of marketable securities

 

—

 

 

 

—

 

 

 

—

 

 

 

5,452

 

Originations of materials financing

 

—

 

 

 

(387

)

 

 

—

 

 

 

(23,972

)

Customer repayments of materials financing

 

34

 

 

 

5,189

 

 

 

1,605

 

 

 

26,242

 

Asset acquisitions, net of cash acquired

 

—

 

 

 

(1,814

)

 

 

(3,792

)

 

 

(7,825

)

Acquisition of businesses, net of cash acquired

 

—

 

 

 

—

 

 

 

(25,945

)

 

 

—

 

Net cash used in investing activities

$

(41,162

)

 

$

(17,522

)

 

$

(150,109

)

 

$

(76,061

)

 

Procore Technologies, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands)

Financing activities

 

 

 

 

 

 

 

Proceeds from stock option exercises

$

3,366

 

 

$

2,524

 

 

$

15,737

 

 

$

17,618

 

Proceeds from employee stock purchase plan

 

10,882

 

 

 

12,394

 

 

 

24,069

 

 

 

25,400

 

Payment of deferred business combination consideration

 

—

 

 

 

—

 

 

 

(1,470

)

 

 

—

 

Payment of deferred asset acquisition consideration

 

—

 

 

 

—

 

 

 

(81

)

 

 

—

 

Principal payments under finance lease agreements, net of proceeds from lease incentives

 

(450

)

 

 

(403

)

 

 

(2,019

)

 

 

(1,853

)

Net cash provided by financing activities

 

13,798

 

 

 

14,515

 

 

 

36,236

 

 

 

41,165

 

Net increase in cash, cash equivalents and restricted cash

 

1,692

 

 

 

37,736

 

 

 

82,299

 

 

 

57,119

 

Effect of exchange rate changes on cash

 

(3,268

)

 

 

1,736

 

 

 

(2,367

)

 

 

855

 

Cash, cash equivalents and restricted cash, beginning of period

 

439,298

 

 

 

318,318

 

 

 

357,790

 

 

 

299,816

 

Cash, cash equivalents and restricted cash, end of period

$

437,722

 

 

$

357,790

 

 

$

437,722

 

 

$

357,790

 

 

Procore Technologies, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

 

Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(dollars in thousands)

Revenue

$

302,048

 

 

$

260,041

 

 

$

1,151,708

 

 

$

950,010

 

Gross profit

 

245,214

 

 

 

212,210

 

 

 

946,096

 

 

 

775,548

 

Stock-based compensation expense

 

4,422

 

 

 

3,134

 

 

 

15,478

 

 

 

11,491

 

Amortization of acquired technology intangible assets

 

6,698

 

 

 

5,904

 

 

 

25,437

 

 

 

22,396

 

Employer payroll tax on employee stock transactions

 

126

 

 

 

101

 

 

 

612

 

 

 

540

 

Non-GAAP gross profit

$

256,460

 

 

$

221,349

 

 

$

987,623

 

 

$

809,975

 

Gross margin

 

81

%

 

 

82

%

 

 

82

%

 

 

82

%

Non-GAAP gross margin

 

85

%

 

 

85

%

 

 

86

%

 

 

85

%

Reconciliation of operating expenses to non-GAAP operating expenses:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(dollars in thousands)

Revenue

$

302,048

 

 

$

260,041

 

 

$

1,151,708

 

 

$

950,010

 

GAAP sales and marketing

 

161,733

 

 

 

122,511

 

 

 

552,019

 

 

 

494,908

 

Stock-based compensation expense

 

(15,333

)

 

 

(13,198

)

 

 

(58,058

)

 

 

(55,162

)

Amortization of acquired intangible assets

 

(3,224

)

 

 

(3,106

)

 

 

(12,700

)

 

 

(12,425

)

Employer payroll tax on employee stock transactions

 

(360

)

 

 

(383

)

 

 

(3,227

)

 

 

(2,766

)

Acquisition-related expenses

 

—

 

 

 

(481

)

 

 

(1,448

)

 

 

(2,483

)

Non-GAAP sales and marketing

$

142,816

 

 

$

105,343

 

 

$

476,586

 

 

$

422,072

 

GAAP sales and marketing as a percentage of revenue

 

54

%

 

 

47

%

 

 

48

%

 

 

52

%

Non-GAAP sales and marketing as a percentage of revenue

 

47

%

 

 

41

%

 

 

41

%

 

 

44

%

 

 

 

 

 

 

 

 

GAAP research and development

$

89,289

 

 

$

74,611

 

 

$

312,987

 

 

$

300,571

 

Stock-based compensation expense

 

(18,277

)

 

 

(15,874

)

 

 

(67,961

)

 

 

(68,275

)

Amortization of acquired intangible assets

 

(650

)

 

 

(670

)

 

 

(2,657

)

 

 

(2,757

)

Employer payroll tax on employee stock transactions

 

(446

)

 

 

(332

)

 

 

(3,535

)

 

 

(3,217

)

Acquisition-related expenses

 

(32

)

 

 

(46

)

 

 

(32

)

 

 

(6,370

)

Non-GAAP research and development

$

69,884

 

 

$

57,689

 

 

$

238,802

 

 

$

219,952

 

GAAP research and development as a percentage of revenue

 

30

%

 

 

29

%

 

 

27

%

 

 

32

%

Non-GAAP research and development as a percentage of revenue

 

23

%

 

 

22

%

 

 

21

%

 

 

23

%

 

 

 

 

 

 

 

 

GAAP general and administrative

$

60,436

 

 

$

52,422

 

 

$

217,513

 

 

$

195,746

 

Stock-based compensation expense

 

(13,734

)

 

 

(11,769

)

 

 

(53,336

)

 

 

(44,406

)

Employer payroll tax on employee stock transactions

 

(266

)

 

 

(274

)

 

 

(2,086

)

 

 

(1,910

)

Acquisition-related expenses

 

(194

)

 

 

(16

)

 

 

(808

)

 

 

(35

)

Non-GAAP general and administrative

$

46,242

 

 

$

40,363

 

 

$

161,283

 

 

$

149,395

 

GAAP general and administrative as a percentage of revenue

 

20

%

 

 

20

%

 

 

19

%

 

 

21

%

Non-GAAP general and administrative as a percentage of revenue

 

15

%

 

 

16

%

 

 

14

%

 

 

16

%

Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(dollars in thousands)

Revenue

$

302,048

 

 

$

260,041

 

 

$

1,151,708

 

 

$

950,010

 

Loss from operations

 

(66,244

)

 

 

(37,334

)

 

 

(136,423

)

 

 

(215,677

)

Stock-based compensation expense

 

51,766

 

 

 

43,975

 

 

 

194,833

 

 

 

179,334

 

Amortization of acquired intangible assets

 

10,572

 

 

 

9,680

 

 

 

40,794

 

 

 

37,578

 

Employer payroll tax on employee stock transactions

 

1,198

 

 

 

1,090

 

 

 

9,460

 

 

 

8,433

 

Acquisition-related expenses

 

226

 

 

 

543

 

 

 

2,288

 

 

 

8,888

 

Non-GAAP income (loss) from operations

$

(2,482

)

 

$

17,954

 

 

$

110,952

 

 

$

18,556

 

Operating margin

 

(22

%)

 

 

(14

%)

 

 

(12

%)

 

 

(23

%)

Non-GAAP operating margin

 

(1

%)

 

 

7

%

 

 

10

%

 

 

2

%

Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands, except share and per share amounts)

Revenue

$

302,048

 

 

$

260,041

 

 

$

1,151,708

 

 

$

950,010

 

Net loss

 

(62,291

)

 

 

(29,519

)

 

 

(105,956

)

 

 

(189,694

)

Stock-based compensation expense

 

51,766

 

 

 

43,975

 

 

 

194,833

 

 

 

179,334

 

Amortization of acquired intangible assets

 

10,572

 

 

 

9,680

 

 

 

40,794

 

 

 

37,578

 

Employer payroll tax on employee stock transactions

 

1,198

 

 

 

1,090

 

 

 

9,460

 

 

 

8,433

 

Acquisition-related expenses

 

226

 

 

 

543

 

 

 

2,288

 

 

 

8,888

 

Non-GAAP net income

$

1,471

 

 

$

25,769

 

 

$

141,419

 

 

$

44,539

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

Non-GAAP net income

$

1,471

 

 

$

25,769

 

 

$

141,419

 

 

$

44,539

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic

 

149,202,684

 

 

 

144,074,303

 

 

 

147,444,772

 

 

 

141,961,467

 

Effect of dilutive securities: Employee stock awards

 

4,192,863

 

 

 

5,329,311

 

 

 

5,004,643

 

 

 

6,591,783

 

Weighted-average shares used in computing net income per share attributable to common stockholders, diluted

 

153,395,547

 

 

 

149,403,614

 

 

 

152,449,415

 

 

 

148,553,250

 

 

 

 

 

 

 

 

 

GAAP net loss per share, basic

$

(0.42

)

 

$

(0.20

)

 

$

(0.72

)

 

$

(1.34

)

GAAP net loss per share, diluted

$

(0.42

)

 

$

(0.20

)

 

$

(0.72

)

 

$

(1.34

)

Non-GAAP net income per share, basic

$

0.01

 

 

$

0.18

 

 

$

0.96

 

 

$

0.31

 

Non-GAAP net income per share, diluted

$

0.01

 

 

$

0.17

 

 

$

0.93

 

 

$

0.30

 

Computation of free cash flow:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands)

Net cash provided by operating activities

$

29,056

 

 

$

40,743

 

 

$

196,172

 

 

$

92,015

 

Purchases of property, plant, and equipment

 

(11,633

)

 

 

(2,252

)

 

 

(19,143

)

 

 

(10,325

)

Capitalized software development costs

 

(17,076

)

 

 

(9,498

)

 

 

(49,529

)

 

 

(34,685

)

Non-GAAP free cash flow

$

347

 

 

$

28,993

 

 

$

127,500

 

 

$

47,005

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213134245/en/

Media Contact press@procore.com

Investor Contact ir@procore.com